Home/Business/ U.S. exempts India from sanctions at Chabahar port in Iran

U.S. exempts India from sanctions at Chabahar port in Iran

Leticia Stanley |Thursday, November 08, 2018

U.S. exempts Chabahar port-related activities from its sanctions

The decision by the Trump administration, which a day earlier imposed the toughest ever sanctions on Iran and is very restrictive in giving exemptions, is a seen as a recognition by Washington of India's major role in the development of the port on the Gulf of Oman, which is of vast strategic importance for the reconstruction of war-torn Afghanistan.

Activities related to the development of the Chabahar port in Iran will be exempt from U.S sanctions that kicked in on Monday, following the 180 day cool-off period after the US withdrew from the Joint Comprehensive Plan of Action (JCPOA or "Iran Deal") in May this year.

The United States has exempted India from imposition of certain sanctions for the development of the strategically-located Chabahar Port in Iran, along with the construction of the railway line connecting it with Afghanistan, a State Department spokesperson said.

The sanctions, however, threatened India's ability to obtain financing for the development of Chabahar, which could potentially open the way for millions of dollars of trade for land-locked Afghanistan and end its dependence on Pakistan's port of Karachi.

The announcement made by Secretary of State Mike Pompeo and Treasury Secretary Steve Mnuchin focussed primarily on the economic pressure built to bring Iranian oil imports to zero and "granted" exemptions to eight countries. "These activities are vital for the ongoing support of Afghanistan's growth and humanitarian relief", the spokesman said.

Meanwhile, US ambassador to Afghanistan John Bass said the US has, after extensive consideration, provided an exception under the Iran Freedom and Counter-Proliferation Act.

India has warm relations with Iran and has joined China and European powers in saying it was not obligated to comply with the unilateral USA sanctions, although it has sought to appease Washington by curbing some of its Iranian oil imports.

India has poured $2 billion into Afghanistan since the 2001 US-led overthrow of the Taliban regime, which was also opposed by Iran.

The sanctions reimposed on Iran's oil exports - its main revenue source - and financial sector were triggered by US President Donald Trump's May 8 decision to abandon the 2015 worldwide deal created to block Tehran's development of nuclear weapons.

The exemptions were linked to the reconstruction effort in Afghanistan, to which India has been a key contributor, a role that was recognised and reinforced by president Donald Trump in the South Asia strategy he announced in August 2017, earmarking an expanded role for New Delhi.

Popular news

Michigan, Missouri, Utah voters opt to loosen marijuana laws
And while a majority of legal states only allow the cultivation of six cannabis plants per individual, MI will allow 12 . Violations of the law would result in civil infractions or criminal charges, depending on the severity of the offense.

The over that went for 43 runs!
The stand was a Northern Districts record for the sixth wicket, surpassing the 150 set by BJ Watling and Peter McGlashan. South Africa-born fast bowler Willem Ludick was at the receiving end as he was taken to the cleaners, literally.

Supreme Court ends fight over Obama-era net neutrality rules
Newly confirmed Supreme Court Justice Brett Kavanaugh and Chief Justice John Roberts both recused themselves from the petitions. The Department of Justice made the request Monday after the lower courts failed to meet a deadline for a decision on DACA.

Dead Brothel Owner Wins Nevada Legislative Seat
Hof's campaign was based on deeply conservative ideals including a hard-line policy on immigration and expansion of gun rights. When Hof died , it was already too late to remove his name from the ballot, and ballots had already been printed and mailed.

Donald Trump Viciously Attacks CNN Reporter Jim Acosta
When Trump moved on to NBC's Peter Alexander , the reporter defended Acosta, calling the president's description of him "unfair". That's such a racist question", Trump said to Alcindor, who is black. "That's such a racist question".

Colorado man pleads guilty to killing pregnant wife, kids
Colorado law requires that a first-degree murder conviction brings a mandatory life sentence without the possibility of parole. Watts will receive his other sentencing terms on November 19, the date on which his status conference was previously scheduled.

Schumer says new AG must protect Mueller probe
In another tweet , Trump thanked Sessions "for his service" and said "a permanent replacement will be nominated at a later date". Whitaker added in the piece that "it is time for [Rod] Rosenstein...to order Mueller to limit the scope of his investigation".